Amends Tennessee tax code to redefine terms and reallocate funds for transportation improvements.

This bill amends Tennessee tax law to redefine terms such as "public transit system" to "transportation" and "transit improvement" to "transportation improvement." It also changes the eligibility criteria for local governments to collect surcharges, requiring them to allocate funds for transportation purposes. If a local government fails to meet the required allocation, the unallocated funds will be redirected to the state highway fund for state highway improvements. The changes take effect July 1, 2025.

Amends Tennessee tax code to redefine terms and reallocate funds for transportation improvements.

This bill amends Tennessee tax law to redefine terms such as "public transit system" to "transportation" and "transit improvement" to "transportation improvement." It also changes the eligibility criteria for local governments to collect surcharges, requiring them to allocate funds for transportation purposes. If a local government fails to meet the required allocation, the unallocated funds will be redirected to the state highway fund for state highway improvements. The changes take effect July 1, 2025.